2 docs tagged with "writing_of_a_loan"

When a loan in Open state misses installments, its state is changed to Arrears. In arrears, depending on product configurations, penalties may be added automatically to a loan at specific intervals. You might want to limit penalties added to a particular loan, or on loan creation, you might want to restrict the system from adding penalties to a specific loan in case of default.

Only loans in Open or Arrears state can be written off. Writing off a loan takes the remaining loan balances off the portfolio, registering them as a loss.